Management Summer

What functions of management has McDonald’s leadership used in order to turn around the company and make it profitable? Introduction: When businesses find they are not turning a profit they have to make some adjustments. Managers of these businesses need to apply the core management concepts to successfully envision and apply McDonald’s new marketing strategies.

In he last few years McDonald’s has applied Incredible management skills to turn the company around and turn a great profit. Here we will show the functions of management they used, the goals they set, and the strategies they used to accomplish those goals. Planning: Planning is the first of the four core functions of management. In planning, a company makes an assessment of the state of the company at that time and envisions where they want the company to be In the future.

Once an assessment has been completed, the company will determine the course of action necessary to achieve those goals. McDonald’s analyzed current trends and examined the results of Its current strategies. McDonald’s made the determination that rather than focusing on building more restaurants In the U. S. They needed to focus on making those established restaurants more appealing and modern. They also determined that they needed to grow outside of the US. The Menu and d©cord needed to be evaluated and adjusted to compete with other fast food establishments.

Employees also needed to be more knowledgeable and trained better as managers. Organizing: The second of the core functions of management is organizing. In planning, a company determines what they must do to improve. In organizing, management figures out how they will implement those improvement plans. They rally the troops and figure out who Is going to focus on what particular piece of the overall plan. Once McDonald’s figured out what they wanted to do, they needed to assemble focus groups to test consumer reactions to improvements on the menu selection and d©cord.

Of course, the changes made were not made overnight. McDonald’s first tried out most changes on a small portion of their restaurants to see how the changes irked before implementing them throughout the whole organization. The d©cord was rethought to be more in tune with each host country. Menu items needed to be modernized. Upon analyzing meals eaten at their restaurants, they realized there the market in China. Leadership: Leadership, or leading, is the third core function of management.

In leading, management controls and supervises the actions of the subordinates in order to ensure they are taking the right steps in pursuit of company goals. Management also helps employees achieve their personal and professional goals. In order to make mom changes in the franchises, McDonald’s offered incentives to franchises to pay for the modernization of the restaurants, advertising and equipment. Prior to expanding in China, McDonald’s ran a “Hamburger University,” Wee (2011) one of seven McDonald’s training facilities around the world, to train new managers to lead teams in future McDonald’s locations.

Denis Henequen, a Frenchman, started out as a branch Manager in Paris 25 years ago Chapel (2008). He is now President of European Operations. In 2005 he was tasked to make changes to the European operations of McDonald’s which made the European market 55% percent of the total venue for the company. He was so successful, with obvious backing from the company, that he was tasked to help transform some of the sites in the U. S. Controlling: Controlling is the fourth and last function of management.

Management re-starts the process when a procedure is finally in place. In controlling, management monitors and evaluates how the plans are being implemented and establishes performance standards. The company seeks driven individuals who have the initiative to make themselves and the company successful to attend Hamburger University. McDonald’s test standards for each menu item. Each item should be made exactly the same with the same measured ingredients. This simplifies the process and ensures food tastes the same every time.

All the McDonald’s restaurants are easily identified because they are decorated almost the same and usually by the same teams. The company evaluates how well the changes are received by looking at the finance and sales reports. Conclusion: McDonald’s has done a tremendous Job at applying all the functions of management. They have focused on minority markets which tend to sway the trends. They have ensured employees get sufficient training. They have modernized the company both physically and procedurally.

They also work with the communities by sponsoring many projects. McDonald’s even tries to offer healthy alternatives in the menu. They have been successful at the transformation of a once boring and tired fast food chain to a more modern restaurant by constantly planning, organizing, leading and controlling.

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